Which of the Following Is Not True About Closing Entries

question 22

Multiple Choice

Which of the following is not true about closing entries?

• A) There are four closing entries that update the retained earnings account.
• B) After the second closing entry, the income summary account is equal to the net income or (loss) for the period.
• C) All real accounts are closed at the end of the period.
• D) By closing nominal accounts at the end of the period to zero, it is possible to isolate next period's information correctly.

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Definitions:

Neo-Freudians

Psychologists who followed Freud but diverged from his ideas, emphasizing social influences and conscious thoughts more than sexual drives.

Carl Jung

A Swiss psychiatrist and psychoanalyst who founded analytical psychology.

Karen Horney

A psychoanalyst known for her theories on neurosis, personality, and psychoanalytic social theory, emphasizing cultural and social factors.

Personality

The unique set of consistent behavioral and emotional traits, patterns, and characteristics that define an individual.